1. Non-Banking Financial Company (NBFC) A NBFC is a company registered under the companies Act, 1956 and is engaged in the business of · Loans & Advances · Acquisition of shares/ stock/ bonds/ debentures/ securities issued by government or local authority or other securities of like marketable in nature · Leasing, hire-purchase, insurance business, chit business However, a NBFC doesn’t include any institution whose principal business is that of agriculture activity, industrial activity, sale/ purchase/ construction of immovable property. 2. Principal Business It is defined as Financial Assets + Income arising there from >= 50% of its total assets (netted off by intangible assets) and total income respectively. 3. Classification of NBFCs NBFCs ...
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